978-1133939283 Chapter 4 Solution Manual Part 1

subject Type Homework Help
subject Pages 8
subject Words 1130
subject Authors Belverd E. Needles, Marian Powers

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DQ1.
DQ2.
CHAPTER 4—Solutions
COMPLETING THE ACCOUNTING CYCLE
Discussion Questions
It is so called because its steps are repeated each accounting period. Step 1 of
Since the Income Summary account is used to accumulate a balance that is sub-
one period follows step 6 of the prior period.
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1. 3.
5,200
500
2,200
800
Short Exercises
SE1. Concepts Underlying Closing Entries
a
b
SE2. Accounting Cycle
To close the Withdrawals account
SE6. Closing the Withdrawals Account
P. Mehta, Withdrawals
P. Mehta, Capital
To close the Income Summary account
SE5. Closing the Income Summary Account
Other Expenses
To close the expense accounts
To close the revenue accounts
SE4. Closing Expense Accounts
Income Summary
SE3. Closing Revenue Accounts
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Bal. 800 Dec. 31 800
Bal.
Bal. ——
Bal. Bal.
Apr. 1
Mar. 31 Mar. 31
Bal. Bal.
Bal.
SE9. Effects of Reversing Entries
Salaries Expense
1,800
To reverse accrual of salaries expense
Rent Expense
Wages Expense Other Expenses
31Dec. Bal.800
SE7. Posting Closing Entries
360
SE8. Preparation of Reversing Entries
Salaries Payable
P. Mehta, Capital P. Mehta, Withdrawals
1,300
Laboratory Fees Revenues
Salaries Payable
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Dec. 31 2,600
1,550
1,050
350
31 35,860
31 26,840
31 9,020
31 7,000
To close the Withdrawals account
F. Katsu, Capital
Income Summary
To close the Income Summary account
SE10. Preparation of Closing Entries
To close the revenue account
To close the expense accounts
Income Summary
2014
Service Revenue
Income Summary
Income Summary
To close the Income Summary account
A. Riley, Capital
To close the expense accounts
To close the revenue account
Repair Revenue
To close the Withdrawals account
SE11. Preparation of Closing Entries from a Work Sheet
Dec.
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31 25,620
31 15,830
31 9,790
1.
2. 1 1,280
3. 25 6,280
Exercises: Set A
Income Summary
E1A. Preparation of Closing Entries
Dec.
To close the Income Summary account
To close the expense accounts
Commission Revenue
Income Summary
To close the revenue account
in October, $1,280 was expensed in September. As a result of the reversing entry,
the Wages Expense account will show the correct balance, $5,000, after the entries
Oct.
payments applies to a previous period. The adjustment for supplies is a deferral; it
The amount that represents wages expense for October is $5,000. Of the $6,280 paid
accrued wages
Wages ExpenseOct.
Wages Payable
E2A. Reversing Entries
A reversing entry for the adjustment to establish Wages Payable would be helpful
because this accrual will be offset by a payment in the next accounting period. The
reversing entry makes it unnecessary to determine how much of the next period's
To reverse the adjusting entry for
will not be offset by a subsequent transaction.
To record wages paid on October 25
are posted.
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15,270
15,300
Ken’s Cleaners
Trial Balance
June 30, 2014
Cash
Accounts Receivable
E3A. Preparation of a Trial Balance
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Debit Credit Debit Credit Debit Credit Debit Credit
888
14 14 14
4 (a) 2 2 2
8 (d) 6 * 2 2
16 16 16
2 (b) 2 4 4
888
6 (e) 4 2 2
24 24 24
12 12 12
46 (e) 4 50 50
444
20 (c) 2 22 22
86 86
(a) 2 2 2
(b) 2 2 2
(c) 2 2 2
(d) 6 * 6 6
16 16 90 90 36 50 54 40
14 14
50 50 54 54
Trial Balance
Office Equipment
Work Sheet
Adjustments
Credit
SheetStatement
Trial Balance
Debit
Income Balance
Office Equipment
Adjusted
For the Month Ended March 31, 2014
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$26,000
19,000
1. 2014
(a) June 30 480
(b) 30 1,260
(c) 30 2,800
(d) 30 4,400
(e) 30 480
2.
2014
(e) July 1 1,440
To reverse the adjusting entry for
accrued salaries from the previous
period
Salaries Payable
E6A. Preparation of Adjusting and Reversing Entries from Work Sheet Columns
Depreciation Expense—Store Equipment
Accumulated Depreciation—Office
To record depreciation expense
Insurance Expense
To record expired insurance
Depreciation Expense—Office Equipment
Accumulated Depreciation—Store
for the period
Office Supplies Expense
To record supplies used during
the period
period
Office Salaries Expense
for the period
To record accrued salaries for the
To record depreciation expense
Adjustment (e) is the only accrual and thus is the only adjustment for which a
reversing entry is appropriate.
Strauss’s Hair Salon
Statement of Owner's Equity
For the Year Ended December 31, 2014
B. Strauss, capital, Dec. 31, 2013
Net income
E5A. Preparation of Statement of Owner’s Equity
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

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